Scrap good news for all
June 29th, 2009 by Richard Aucock
SCRAPPAGE is not only helping new car dealers, but is providing a boost for the entire car industry.
That’s the view of Glass’s expert Adrian Rushmore, who said that the filter-down effects are proving to be pronounced.
‘The highly publicised scrappage scheme is having a ‘halo effect’ that benefits much of the used car market,’ he said.
‘The vast majority of car buyers entering the market will continue to be trading up from a car that is under 10 years old, and therefore not eligible for the £2000 scrappage bonus.
‘This means that used car prices will be unaffected.’
Good news throughout, then? Pretty much. His only concern surrounds small car availability. These were already in short supply before scrappage came along.
‘It is possible that certain models simply won’t be available within the scheme’s stipulated 16-week timeframe for delivery.
‘This situation will be aggravated if manufacturers limit supply to the UK because of the low value of sterling against the Euro, recognising that it may be more profitable for them to support scrappage schemes elsewhere in Europe.’
One to monitor carefully, we think…
 |  |  |